What Is a Difference Between Merchandising Companies and Service Enterprises

question 85

Multiple Choice

What is a difference between merchandising companies and service enterprises?

• A)Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements.
• B)Merchandising companies generally have a longer operating cycle than service enterprises.
• C)Cost of goods sold is an expense for service enterprises but not for merchandising companies.
• D)All are these choices are differences.

---

Definitions:

Freudian Fellows

A term possibly alluding to followers or proponents of Freud's psychoanalytic theories, but not widely recognized or used.

Moral Path

The ethical direction or course of action that an individual chooses to follow, often guided by personal values and societal norms.

Sensible

Showing wisdom or prudence in practical affairs or in making judgments.

Psychoanalysis

A therapeutic approach founded by Sigmund Freud that explores unconscious motivations and conflicts as they manifest in behavior.